Foreign media: The former Chief Executive Officer of Binance CZ indicated that he had not fully understood Strategy ' s STRC product after several attempts. According to the article, he believed that such financial instruments were complex in structure and that it might be difficult for ordinary investors to judge the risks involved.
Question of STRC
CZ states that it does not have the capacity to explain in detail how STRC operates. He mentioned that such products tended to pile up multiple layers of leverage and structured finance, partly like “black boxes”.
He also indicated that the greater the complexity, the less often the transparency. This makes risk assessment more difficult for investors.
Assessment of Saylor
CZ stressed that its comments were not directed at Michael Saylor personally. According to him, Sailor was clearly very smart and more familiar with listed companies, capital markets, priority instruments and structured financing.
CZ also mentioned that Saylor had spent about 15 minutes explaining STRC to him before the event. For him, such products were closer to traditional financial engineering than technological entrepreneurship.
The idea of Strategy selling bitcoin.
When it comes to Strategy selling 32 bitcoins, CZ believes that the market is overreacting. According to the article, Strategy held nearly 1 million bitcoin, a small-scale transaction.
CZ states that the company has to deal with financial obligations such as dividends and balance sheets. The market should not see Saylor simply as a “hero” or a “rebel”.
Additional information:CZ also questioned whether the more volatile bitcoin was suitable for the bottom asset as a highly leveraged product.